I'd say let's meet in the middle. I agree that not all retro games would likely see a massive paying audience, but some of the old Nintendo classics would certainly play very well on a Smartphone and I could see people pay for their copy of classic Mario.
It's of course entirely possible that I misread the situation, but I do think there'd be a market for at least some of it.
My crazy conspiracy is that Apple and Nintendo have been in talks for several years on the matter. Whether it be regarding preventing emulators on the App Store, or business partnerships. Maybe Apple wanted to buy Nintendo or exclusive rights to their games on iOS and stay in their good graces.
The sudden allowing of emulators tells me that something went south and that there is no more deal to be had. I just don’t believe that the EU decision or worldwide legal pressure alone pressured Apple into allowing emulators.
This all culminates in Nintendo releasing retro first-party titles on iOS and Android before the end of 2025. You heard it here first.